Former Halifax Bank shareholders eye up £2bn dividend bonus


Lloyds, which employs 6,000 people in Calderdale, was in talks with the Bank of England over the weekend to win approval for a payout of more than £2bn to shareholders, according to The Sunday Times.
Lloyds declined to comment.
If Antonio Horta-Osorio, chief executive of the bailed-out lender, can convince the regulator that Lloyds has sufficient reserves to afford the payout, take another hit on mis-selling compensation and withstand a possible economic slowdown, a shareholder pay-out could be announced.
Advertisement
Hide AdAdvertisement
Hide AdIt is understood Mr Horta-Osorio would like to pay about £1.5bn, or 2p a share, in an ordinary dividend and £500m or more in a one-off special dividend.
Lloyds is expected to reveal hefty mis-selling charges when it posts results on Thursday.
Analysts predict the bank will stomach a £2bn charge for payment protection insurance (PPI) mis-selling in the fourth quarter, followed by a £1.1bn hit for 2016/17.
Pre-tax profits are expected to hit £1.24bn, according to analysts at Jefferies, with net interest income coming in at £11.5bn over the same period.
Advertisement
Hide AdAdvertisement
Hide AdLloyds announced a fourfold rise in annual profits to £1.8bn last year.
On Friday RBS will post its eighth year of annual losses. The lender revealed last month that it would remain in the red after taking a £2.5bn hit on charges for mis-selling scandals.